- Silver prices rise as demand for safety increases in the Middle Eastern tensions increases.
- The UN cut employees to Gaza after Israeli air attacks led to hundreds of civilian casualties.
- Russian state media Ria Novosti reports that the US and Russia should release a joint statement on Tuesday.
XAG/USD Breaks Losing Streak, Holds Near $33.10
Silver prices (XAG/USD) have halted their four-day decline, trading around $33.10 per troy ounce during Asian market hours on Tuesday. The metal’s recovery is driven by heightened demand for safe-haven assets as geopolitical tensions intensify.
Middle East Conflict Sparks Market Concerns
The United Nations (UN) announced a reduction in its international staff in Gaza by approximately one-third after Israeli airstrikes led to significant casualties, including UN personnel. Following a brief ceasefire, Israel resumed its military operations against Hamas last week, resulting in nearly 700 reported fatalities since then. Total casualties in Gaza have now surpassed 50,000, with a large number of children among the victims, according to Palestinian health officials.
US-Russia Talks and Black Sea Ceasefire Prospects
In another geopolitical development, Russian state media reported that a joint statement from the US and Russia is expected following diplomatic talks in Riyadh. Discussions focused on various global issues, including potential negotiations for a Black Sea maritime ceasefire.
US Dollar Strength Limits Silver’s Upside
Despite geopolitical turmoil supporting silver, its gains are capped by a stronger US Dollar, which has been bolstered by positive US economic data. The S&P Global Services PMI rose to 54.3 in March, the highest in three months, significantly outperforming market forecasts. The Composite PMI also improved, indicating strong economic growth.
Federal Reserve Signals Uncertainty Over Rate Cuts
Atlanta Federal Reserve President Raphael Bostic expressed concerns over economic uncertainties, suggesting that inflation progress may take longer than expected. As a result, Bostic revised his expectations for rate cuts in 2025, citing persistent price pressures and trade-related risks.
